Intel Corporation (INTC) Must Innovate Its Modem IP Technology To Survive


In an article on Fool, it was reported that Intel Corporation (NASDAQ:INTC) continues to struggle with its mobile chips business. The company is striving hard to strike some deals and milestones which could put it in a formidable position in the mobile hardware industry. The source said that Intel Corporation (NASDAQ:INTC) will achieve the 40 million tablet chip target for the year but most of its business belongs to high-end standalone chips which have a very converged market. Intel Corporation (NASDAQ:INTC) is nowhere to be found in integrated applications processors and mobile business. Qualcomm and ARM is crushing it in various domains of the mobile hardware chips business.

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The author of the article Ashraf Eassa thinks that Intel Corporation (NASDAQ:INTC) has only one way to succeed: by reinventing its modem IP building process. The source thinks that Intel must use state of the art innovation to build its IP modems.

Eassa said that most of the Intel Corporation (NASDAQ:INTC) mobile chips have stand-alone modems in them. Intel Corporation (NASDAQ:INTC)  is using application coupling and processing to give it to the phone vendors. This can be changed to a built-in model in chips, like Qualcomm and other major companies. Intel Corporation (NASDAQ:INTC) will need to change its architecture and design for this.

The source gave the example of Qualcomm, which rolls out integrate cellular modem in its Snapdragon processors. Intel Corporation (NASDAQ:INTC) must also integrate cellular modems in the chips to sell them as integrated packages instead of standalone parts.

As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 18 million shares in Intel Corporation (NASDAQ:INTC).

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